New provisions in the draft law on the approval of GEO no. 119/2022, adopted on Wednesday in the Plenary of the Chamber of Deputies, forces the entry into insolvency of some of the renewables producers (wind and solar) with projects and parks of thousands of MW, according to a joint statement of the Romanian Wind Energy Association (RWEA) and of the Employers’ Organization of Renewable Energy Producers of Romania (PATRES).
“Don’t kill renewables! Don’t cancel investments of thousands of MW, in the middle of winter and the energy crisis, when Romania needs every MW installed in renewable energy capacities to cover the energy consumption of Romanians and industry! Don’t impose total overtaxation formulas inadequate that radically hit renewable energy producers and force them to close production capacities! Don’t bankrupt the renewables sector! Don’t sacrifice future investments!,” the two associations claim.
Patres and RWEA, which total investments of 7.7 billion euros in Romania, make a public appeal to the authorities, with the express request to take urgent measures to avoid the mass destruction of existing investments in renewables and the immediate stop of investments in new abilities.
“We have reached an unthinkable and particularly serious situation for Romania! According to the draft Law on the approval of GEO no. 119/2022, adopted in the Plenary of the Chamber of Deputies, the method of calculating the overtaxation for energy producers has been radically changed. If until now in the calculation formula, the expenses related to the purchase of energy necessary to honor the contracts were also recognized when the energy source is not available (when the wind is not blowing, when the degree of sunshine is low), in the new formula adopted by the Parliament, these expenses are no longer recognized. Moreover, the expenses with the imbalances will only be recognized in a maximum percentage of 5% of the value of the electricity sold, given that the standard in the industry shows imbalances recorded by wind power plants of about 40%, respectively 25% in the case of power plants solar,” say the quoted officials.
Thus, only the income is overtaxed, not the profit, without taking into account that losses are made, because in the case of renewable energy sources there are times when the resources are not available, and the operator is forced by the very way the market operates to buy energy for to honor his obligations.
“If revenues are overtaxed without taking expenses into account, losses will automatically be incurred. We are talking about a disguised form of nationalization! Practically, operating capacities from renewable sources (wind and solar) of around 4,400 MW are being thrown up in the air.”
